CHICAGO, IL—Red Oak Capital Holdings announced that the company provided $10 million for the acquisition and refurbishment of Four Points by Sheraton – O’Hare in Chicago, Illinois. Structured under Red Oak’s Core-Plus Bridge Loan program, the non-recourse, interest-only loan was structured with an 18-month initial term and a loan-to-stabilized-value (LTSV) of 54.54 percent.
The loan proceeds will be used to fund a portion of the $13-million purchase price and support initial capital improvements. The transaction was originated by Red Oak Regional Manager Stratos Athanassiades, underwritten by Thomas Gorski, and administered by James Myatt. The sponsor is a hospitality investor with a portfolio of 20 assets worth in excess of $70 million in gross asset value, including 10 hospitality properties across the Midwest.
“Demand fundamentals around O’Hare remain among the strongest in the country, with reliable year-round traffic from airlines, conferences, and corporate travelers,” said Athanassiades. “This asset is underperforming relative to its peers, but the sponsor brings deep operational know-how and a proven track record of turning around flagging hotel properties through targeted upgrades, better marketing, and more efficient management.”
Property Details
The 295-room, 195,000-square-foot hotel is situated on 7.5 acres adjacent to Chicago O’Hare International Airport. Originally built in 1985 and last renovated in 2015, the full-service hotel offers an indoor pool, meeting space, restaurant, gift shop, and fitness center.
The sponsor’s business plan includes a new Marriott franchise agreement, modest room upgrades, and a larger Marriott-approved PIP renovation thereafter. The sponsor also intends to replace the existing third-party management, relaunch its airline partnerships, and implement a broader digital marketing strategy to boost occupancy and ADR.
“Red Oak’s lending strategy is built around unlocking value in underutilized assets, especially when we see strong sponsorship and clear execution pathways,” said Gary Bechtel, chief executive officer of Red Oak Capital Holdings. “This hotel is perfectly located, backed by one of the most respected flags in the business, and positioned to benefit from both local market strength and broader travel recovery trends.”
